Condition for liquidation - winding up, Business Law and Ethics

Assignment Help:

Condition for liquidation:

The liquidation itself may render a charge over the company's assets void in any of the following circumstances:

(a)     the charge was not registered within 42 days of creation as required by s.96;

(b)     the charge is a floating charge created within the period of 12 months before commencement of liquidation (paragraph 24 below), or

(c)     the charge is void as a fraudulent preference (paragraph 28 below).

If the charge is void the receiver's powers and appointment lapse and he must account to the liquidator for his transactions and the assets of the company still under his control.

If there are not sufficient other assets to pay preferential debts those debts are paid out of property subject to a floating charge in priority to that charge.  It is the duty of the liquidator to ensure that debts are paid in their due order of priority.


Related Discussions:- Condition for liquidation - winding up

Explain the theories of relational contracts, Theories of relational contra...

Theories of relational contracts These are long-term, non-legal or only incompletely legal agreements. The fact of incomplete foresight is taken into account by leaving gaps in

Form of reconstruction, Form of reconstruction: Where one company tran...

Form of reconstruction: Where one company transfers its undertaking (and assets) to another company in exchange for shares to be alloted direct or distributed to the members o

Objects clause, Objects Clause: Reasons for Stating Objects  Sectio...

Objects Clause: Reasons for Stating Objects  Section 5 (1) (c) requires the memorandum of association to state the objects of the company. The section does not however indi

Difference fixed and floating charge, Part A Companies can raise fina...

Part A Companies can raise finance by borrowing money and securing the debt by way of fixed or floating charge. Using case law in your answer explain what is the distinction b

Legal status - promotion, Legal Status:  A promoter is not an agent o...

Legal Status:  A promoter is not an agent of the company he promotes.  However, the English courts have held that he stands in a fiduciary relationship to the company he promo

State the term- gains from policy coordination, Gains from Policy Coordinat...

Gains from Policy Coordination The previous section has illustrated how large countries typically face positive or negative spill over effects associated with aggregate demand

Normative ethics theory, As you have already learned during your tenure at ...

As you have already learned during your tenure at Midwest Valueland (MV) and from exposure to business news, it is not unusual for leaders and managers to encounter ethical situati

Method of service - meetings and resolutions, Method of Service: Artic...

Method of Service: Article 131 provides that a notice may be given by the company to any member either personally or by sending it by post to him at his registered address or

Explain the controversial mode of acquisition - accession, Explain the cont...

Explain the controversial mode of acquisition - accession The ontroversial mode of acquisition is accession . It involves the peaceful transfer of territory from one sovereig

What are the fact finding ethics, The phrase called information overload ma...

The phrase called information overload may be a bit of a problem because it used so often, but the fact remain that managers & support staff are merged in information of all kinds.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd